A Conceptual Model to Measure Digital Maturity Level in Electricity Distribution Companies

Abstract

Digitalization, while being one of the primary objectives in today's business world, increases its significance with technological advancements. Recently, there has been a need for tools to determine the levels of digitalization within certain standards and metrics for companies seeking to understand and accelerate their digitalization process, and to determine how these companies should proceed to address their shortcomings. When specifically looking at electricity distribution companies, the technological advancements such as distributed production, storage, and electricity vehicles make the digitalization process not just a choice but a necessity to operate distribution systems reliably and effectively. This study proposes a conceptual model specifically for electricity distribution companies for the first time, by researching digital maturity models developed for other sectors in the literature.

Keywords

• Digital Maturity Assessment
• Conceptual Model
• Technology Adoption
• Digital Transformation

References

1. Accenture. (2017). Accenture Türkiye dijitalleşme endeksi. (Technical Report).
2. Agarwal, R., Gao, G. (Gordon), DesRoches, C., & Jha, A. K. (2010). The digital transformation of healthcare: Current status and the road ahead. Information Systems Research, 21(4), 796-809. https://doi.org/10.1287/isre.1100.0327
3. Akamai. (2018). Advancing digital maturity in financial services.
4. Annunziata, M., & Bell, G. (2015). Powering the future: Leading the digital transformation of the power industry. General Electric.
5. Asiltürk, A. (2021). İşletmelerde dijital dönüşüm yönetiminde nihai hedef: Dijital olgunluk. Alanya Akademik Bakış, 5(2), 647-669. https://doi.org/10.29023/alanyaakademik.859300
6. Berghaus, S., Back, A. (2016). Stages in digital business transformation: Results of an empirical maturity study. In: Proceedings of the Mediterranean Conference on Information Systems (MCIS).
7. Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37, 471-482. https://doi.org/10.25300/MISQ/2013/37:2.3
8. Canetta, L., Barni, A., & Montini, E. (2018, June 17-20). Development of a digitalization maturity model for the manufacturing sector. In: Proceedings of the IEEE International Conference on Engineering, Technology and Innovation, Stuttgart, Germany. https://doi.org/10.1109/ICE.2018.8436292

9. Catlin, T., Scanlan, J., & Willmott, P. (2015). Raising your digital quotient. McKinsey Quarterly, 3, 30-43.
10. Cisco. (2019). Cisco APAC SMB Digital maturity index. Cisco Systems.
11. Corr, J. (2022, April 6). Unleashing the power of digital marketing: The digital maturity model explained. Seer Interactive. URL: https://www.seerinteractive.com/insights/introduction-to-digital-maturity
12. Dahlström, P., Desmet, D., & Singer, M. (2017). The seven decisions that matter in a digital transformation: A CEO’s guide to reinvention. Digital/McKinsey: Insights, 3, 18-23.
13. De Carolis, A., Macchi, M., Negri, E., & Terzi, S. (2017, September 3-7). A maturity model for assessing the digital readiness of manufacturing companies. In: H. Lödding, R. Riedel, K-D. Thoben, G. von Cieminski, & D. Kiritsis (Eds.), Proceedings of the Advances in Production Management Systems. The Path to Intelligent, Collaborative and Sustainable Manufacturing (APMS 2017), (pp 13-20), Hamburg, Germany. https://doi.org/10.1007/978-3-319-66923-6_2
14. Deloitte. (2018). Digital maturity model achieving digital maturity to drive growth.
15. Deloitte Digital (2018). EMEA digital banking maturity 2018: How to become a digital champion and why only few succeed?.
16. Durek, V., Kadoic, N., & Redjep, N. B. (2018, May 21-25). Assessing the digital maturity level of higher education institutions. In: Proceedings of the 41st International Convention on Information and Communication Technology, Electronics and Microelectronics (MIPRO), Opatija, Croatia. http://doi.org/10.23919/MIPRO.2018.8400126
17. Düzcan, A., & Fidan, Y. (2023). İşletmelerde dijital olgunluk düzeyinin yenilik performansı üzerindeki etkisinde büyük veri analitik yeteneğinin aracı ve veri odaklı kültürün düzenleyici rolü. İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, 22(46), 356-389. https://doi.org/10.46928/iticusbe.1294014
18. Feliciano-Cestero, M. M., Ameen, N., Kotabe, M., Paul, J., & Signoret, M. (2023). Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization. Journal of Business Research, 157, 113546. https://doi.org/10.1016/j.jbusres.2022.113546
19. Gill, M., & VanBoskirk, S. (2016). The digital maturity model 4.0. Benchmarks: digital transformation playbook.
20. Growth Hub. (2019). Digital maturity index. Growth Hub. URL: https://www.thegrowthhub.biz/digital-maturity-index
21. Gürder, F. (2022, August 17-18). Türkiye'deki işletmelerin dijital olgunluğu. In: Proceedings of the İzmir International Conference on Technology and Social Sciences (IICTSS 2022), New Studies and Trends in Social Sciences, (pp. 40-41), İzmir, Türkiye.
22. Hamidi, S. R., Aziz, A.A., Shuhidan, S.M., Aziz, A.A., & Mokhsin, M. (2018, March 19-22). SMEs maturity model assessment of IR4.0 digital transformation. In: A. M. Lokman, T. Yamanaka, P. Lévy, K. Chen, & S. Koyama (Eds.), Proceedings of the International Conference on Kansei Engineering & Emotion Research, (KEER 2018), (pp 721-732), Kuching, Sarawak, Malaysia. http://dx.doi.org/10.1007/978-981-10-8612-0_75
23. Haryanti, T., Rakhmawati, N. A., & Subriadi, A. P. (2023). The extended digital maturity model. Big Data and Cognitive Computing, 7(1), 17. https://doi.org/10.3390/bdcc7010017
24. IEA. (2017). Energy Access Outlook 2017. URL: https://www.iea.org/reports/energy-access-outlook-2017
25. Karimi, J., & Walter, Z. (2015). The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry. Journal of Management Information Systems, 32, 39-81. https://doi.org/10.1080/07421222.2015.1029380
26. Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital transformation: An overview of the current state of the art of research. Sage Open, 11(3). https://doi.org/10.1177/21582440211047576
27. Leino, S.-P., Kuusisto, O., Paasi, J., & Tihinen, M. (2017). VTT model of digimaturity. In: J. Paasi (Eds.), Towards a new era in manufacturing: Final report of VTT's for industry spearhead programme, (pp. 41-46). VTT Technical Research Centre of Finland.
28. Leroi, A., Martynov, A., (2020). How utilities can regain control of their technology roadmap. Bain & Company. URL: https://www.bain.com/insights/how-utilities-can-regain-control-of-their-technology-roadmap/
29. Leyh, C., Bley, K., Schäffer, T., & Forstenhäusler, S. (2016, September 11-14). SIMMI 4.0-a maturity model for classifying the enterprise-wide IT and software landscape focusing on Industry 4.0. In: Proceedings of the Federated Conference on Computer Science and Information Systems (FedCSIS), Gdansk, Poland.
30. Majchrzak, A., Markus, M. L., & Wareham, J. (2016). Designing for digital transformation: Lessons for information systems research from the study of ICT and societal challenges. MIS Quarterly, 40(2), 267-277. https://doi.org/10.25300/misq/2016/40:2.03
31. Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343. http://dx.doi.org/10.1007/s12599-015-0401-5
32. NHS. (2019). Connected digital systems-Maturity Index. National Health Service UK.
33. Nuroğlu, E., & Nuroğlu, H. H. (2018). Türkiye ve Almanya'nın sanayide dijital dönüşümü: Yol haritaları ve şirketlerin karşılaştırması. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 23(Endüstri 4.0 ve Örgütsel Değişim Özel Sayısı), 1537-1560.
34. Open Roads Community. (2020). Open Digital Maturity Model. Open Roads Community.
35. Perera, S., Jin, X., Das, P., Gunasekara, K., & Samaratunga, M. (2023). A strategic framework for digital maturity of design and construction through a systematic review and application. Journal of Industrial Information Integration, 31, 100413. https://doi.org/10.1016/j.jii.2022.100413
36. PwC. (2015). The digitalization of utilities. PwC.
37. PwC. (2019). Digital operations study for energy - Power and utilities. PwC.
38. Remane, G., Hanelt, A., Wiesboeck, F., & Kolbe, L (2017). Digital maturity in traditional industries–an exploratory analysis. In: Proceedings of the 25th European Conference on Information Systems (ECIS 2017).
39. Schuh, G., Anderl, R., Gausemeier, J., ten Hompel, M., & Wahlster, W. (Eds.) (2018). Industrie 4.0 Maturity Index: Managing the Digital Transformation of Companies. Acatech.
40. Schumacher, A. S., Erol, S., & Sihn, W. (2016). A maturity model for assessing Industry 4.0 readiness and maturity of manufacturing enterprises. Procedia CIRP, 52(1), 161-166. https://doi.org/10.1016/j.procir.2016.07.040
41. Svahn, F., Mathiassen, L., & Lindgren, R. (2017). Embracing digital innovation in incumbent firms: How Volvo Cars managed competing concerns. MIS Quarterly, 41(1), 239-253. http://dx.doi.org/10.25300/MISQ/2017/41.1.12
42. TÜBİSAD. (2023). Türkiye'nin dijital dönüşüm endeksi 2022. TÜBİSAD.
43. TÜSİAD. (2017). Türkiye'nin sanayide dijital dönüşüm yetkinliği. TÜSİAD.
44. Vial, G. (2021). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2) 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
45. Westerman, G., Calméjane, C., Bonnet, D., Ferraris, P., & McAffee, A. (2011). Digital transformation: A roadmap for billion-dollar organizations. MIT Sloan Management.
46. Williams, P. A. H., Lovelock, B., Cabarrus, T., & Harvey, M. (2019). Improving digital hospital transformation: Development of an outcomes-based infrastructure maturity assessment framework. JMIR Medical Informatics, 7(1). https://doi.org/10.2196/12465
47. World Economic Forum. (2018). The digital enterprise: Moving from experimentation to transformation. URL: https://www.weforum.org/publications/the-digital-enterpise-moving-from-experimentation-to-transformation/
48. Zaoui, F., & Souissi, N. (2020). Roadmap for digital transformation: A literature review. Procedia Computer Science, 175, 621-628. https://doi.org/10.1016/j.procs.2020.07.090